Chicago Radio: Cumulus Media Wants WKQX, If....

Cumulus Media is still apparently interested in adding WKQX 101.1 FM to expand it Chicago cluster.

There is a caveat...if the price is right. Cumulus currently has just two stations in the cluster, Talk WLS 890 AM and Classic Hits WLS 94.7 FM.  WKQX is owned by Merlin Media, which just solf WLUP, and Cumulus operates the station under an LMA.

Merlin’s original deal was for Cumulus to pay roughly $70 million for WLUP and WKQX, or $50 million plus what it had paid in LMA fees since it took over the stations in 2014.

But in requesting permission from U.S. Bankruptcy Court to end its LMA to purchase agreement with Merlin, Cumulus claimed the $50 million purchase price was “significantly in excess of the stations’ market value.” In early February, Cumulus and Merlin amended their LMA, dramatically lowering the monthly fee Cumulus would pay Merlin and giving Merlin the right to sell the two FMs to a third party.

Here's how Cumulus Market Manager put it to the troops in a memo Tuesday:

“By now, you may have heard that WLUP-FM has been sold to EMF, Educational Media Foundation, by Merlin Media. This means that we will end WLUP’s current programming today, and later this week or next week, we will cease to be operating WLUP-FM. 

“What does this mean to Cumulus-Chicago and those of us not affected by the sale? While we had hoped to be the highest bidder for the station, we are taking the sale of the Loop as an opportunity to ensure we have the right people in the right jobs and are keeping as many employees as possible. In finalizing this sale, we can now focus on the future stability of the Chicago cluster and necessary growth to remain competitive. We continue to be in active discussions with Merlin regarding an acquisition of WKQX-FM. The sale of the Loop has no impact on our desire to bring WKQX-FM formally into the Cumulus family at the right price. 

“We wish each and every one of those affected by the sale nothing but the best as we all move forward. I will do my best to continue to provide you all with as much information as possible as we finalize the transfer of WLUP-FM to EMF, and I am available should you have any questions during this period. 

“As with any difficult decisions we encounter in life, we now have the choice how we handle this opportunity. I look forward to continuing to grow these legendary stations with your help. Thank you in advance for your support, understanding and dedication to our future successes. 

Respectfully,
Marv